European Employment Strategy – European Semester – Western Balkans Economic Reform Programmes and Employment and Social Reform Programmes ESAP – Meeting of Ministries of Labour of the Western Balkan Economies, Podgorica 13-14 December 2016 Christiane Westphal, European Commission, DG EMPL D.3 1
Content • I EU governance in the employment and social field • II EU European Semester and Economic Reform Programmes of the Western Balkan economies • III Policy priorities • IV Some tools 2
I EU governance in the employment and social field 3
Open Method of Coordination (OMC) • The Member States cooperate in gearing their policies to shared objectives through the OMC, an intergovernmental process whereby the Member States evaluate each other (peer pressure) in areas of Member State competence, such as employment, social protection, social inclusion, education, youth and training. • It relies mainly on: jointly identifying and setting shared objectives (adopted by the Council), measuring instruments established jointly (statistics, indicators and guidelines), benchmarking, which involves comparing the Member States’ performances and exchanging best practice (monitored by the Commission). • • The OMC involves ‘soft law’ measures which never take the form of legislation. Under the European Semester and Europe 2020, the OMC requires the Member States to draw up national reform plans and forward them to the Commission. 4
European Employment Strategy • Treaty on the functioning of the European Union (TFEU): Yearly adoption of employment guidelines . These are shared priorities and targets for employment policies proposed by the Commission, agreed by national governments and adopted by the Council. Yearly joint employment report (JER), proposed by the Commission and adopted by the Council (hence ‘joint’), based on: (a) an assessment of the employment situation in Europe; (b) the way the employment guidelines have been implemented, and (c) an examination by the Employment Committee of the draft national reform programmes. The draft JER is part of the annual economic governance package and annexed to the annual growth survey (AGS). National reform programmes (NRPs), drawn up and submitted by the Member State governments and analysed by the Commission for conformity with the employment guidelines. Provides for the possibility (Article 148) of country-specific recommendations to the Member States based on Commission proposals. 5
EES implementation: Member States • End 1990s • National Action Plans Employment • 2000-2010 • Lisbon Strategy – National Reform Programmes • 2010-2020 • European Semester – National Reform Programmes 6
EES implementation • EU level coordination: • EPSCO Council + Employment Committee • Annual Employment Guidelines • Joint Employment Report • Country-specific recommendations • Over time increasingly interlinked with economic 7 governance, in particular of the EMU
European Semester revamp 2015 • More focus on the euro area • Strengthen the social dimension • More focus on economic convergence • Increase democratic ownership 8
Social OMC • • Member States agree on common objectives in the areas of social protection and social inclusion, which is the core of the social OMC • Member States carry out voluntary annual social reporting (National Social Reports based on a questionnaire). This is on top of reporting on the poverty and social exclusion target in connection with the National Reform Programmes (NRPs). It details the Member States’ policy efforts in the social protection and social inclusion areas and the ways these contribute to meeting the common objectives. 9
II EU European Semester and Economic Reform Programmes of the Western Balkan economies 10
2016-17 European Semester ERP process SEP COM country teams COM + OECD support/missions OKT COM country teams COM + OECD support/missions NOV COM AGS, draft JER COM + OECD support/missions DEC COM/MS bilateral meetings COM + OECD support/missions JAN MS prepare JER adoption 31/1 ERP submission FEB COM publ. Country reports COM /WBs on ERPs MAR EUCO adopts econ.priorities COM /WB on ERPs APR MS submit NRPs (and SCPs) Assessments and PGs to Council fora and WB partners MAY COM CSR proposal EMCO, EPC, EFC, Council – with WB partners JUNE Council discussion CSRs Guidance for ERP cycle 2018 JULY EUCO endorses final CSRs Guidance for ERP cycle 2018 11
Economic and Social Reform Programmes • Medium-term • Comprehensive identification of key challenges • Envisaged policy reforms outlined • Link to the ERP process • Implementation and Monitoring 12
III Policy priorities 13
Employment Guidelines 2016 Council Decision (EU) 2016/1838 of 13 October 2016 on guidelines for the employment policies of the Member States for 2016 = Reconduction of the 2015 guidelines 14
Guideline 5: Boosting demand for labour Member States should facilitate the creation of quality jobs, reduce the barriers business faces in hiring people, promote entrepreneurship and, in particular, support the creation and growth of small enterprises. Member States should actively promote the social economy and foster social innovation. The tax burden should be shifted away from labour to other sources of taxation less detrimental to employment and growth, while protecting revenue for adequate social protection and growth-enhancing expenditure. Reductions in labour taxation should aim to remove barriers and disincentives in relation to participation in the labour market, in particular for those furthest away from the labour market. Member States should, together with social partners and in line with national practices, encourage wage-setting mechanisms allowing for a responsiveness of wages to productivity developments. Differences in skills and divergences in economic performance across regions, sectors and companies should be taken into account. When setting minimum wages, Member States and social partners should consider their impact on in-work poverty, job creation and competitiveness. 15
Guideline 6: Enhancing labour supply, skills and competences Member States, in cooperation with social partners, should promote productivity and employability through an appropriate supply of relevant knowledge, skills and competences. Member States should make the necessary investment in all education and training systems in order to improve their effectiveness and efficiency in raising the skill and competences of the workforce, thereby allowing them to better anticipate and meet the rapidly changing needs of dynamic labour markets in an increasingly digital economy and in the context of technological, environmental and demographic change. Member States should step up efforts to improve access for all to quality lifelong learning and implement active-ageing strategies that enable longer working lives. Structural weaknesses in education and training systems should be addressed to ensure quality learning outcomes and to reduce the number of young people leaving school early. Member States should increase educational attainment, encourage work-based learning systems such as dual learning, upgrade professional training and increase opportunities for recognising and validating skills and competences acquired outside formal education. High unemployment and inactivity should be tackled. Long-term and structural unemployment should be significantly reduced and prevented by means of comprehensive and mutually reinforcing strategies that include individualised active support for a return to the labour market. Youth unemployment and the high number of young people not in education, employment or training (NEETs), should be comprehensively addressed through a structural improvement in the school-to-work transition, including through the full implementation of the Youth Guarantee. Barriers to employment should be reduced, especially for disadvantaged groups. Female participation in the labour market should be increased and gender equality must be ensured, including through equal pay. The reconciliation between work and family life should be promoted, in particular access to affordable quality early childhood education, care services and long-term care. Member States should make full use of the European Social Fund and other Union funds to foster employment, 16 social inclusion, lifelong learning and education and to improve public administration.
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